Amazon.com, Inc. (NASDAQ:AMZN) has maintained a lead in the e-commerce industry, managing to stay ahead of other industry titans. This is according to a report by MKM Partners. There is a common belief among investors and successful companies in the world that a company’s success limits its own future growth.
The unique case of Amazon
Amazon remains the long-term leader among industry titans, according to MKM Partners, with the e-commerce company set to nearly triple its share of the U.S. retail market over the next seven years. However, Amazon investors seem to be lucky as the company seem to have a lot of growth opportunities despite its massive size.
According to MKM Partners, shares of Amazon are expected to continue rallying in 2018. The shares have already gained 38% over the last one year. The share has outperformed the 0.5% on return in the first quarter of 2018 that was projected by S&P 500.
Rob Sanderson, analyst at MKM in a note to client revised his 12-month price target on the company’s stock from $1,840 from $1,750. He projected that shares are expected to gain an additional 14% by 2025 as the e-commerce giant increases its market share in the United States. Amazon’s market value stands at $777 billion and has earned shareholders 61.9% in return to shareholders over the last 12 months.
Standing out among its competitors
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According to Sanderson, the company’s stock is expected to gain 2.5 to 3 times in the next five to six years. He added that the company has stood out amid intense competition from industry giants like Facebook, Inc. Common Stock (NASDAQ:FB), Apple Inc. (NASDAQ:AAPL) and Alphabet Inc Class C (NASDAQ:GOOG).
According to MKM, some of the factors driving the company’s growth are strong logistics infrastructure, a strong brand, a competent and highly committed management and secular trend. The company has gained over $300 billion in market capitalization since its quarterly earnings in October last year. This is way beyond the market value of salesforce.com, inc. (NYSE:CRM) and Walmart Inc combined.